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ResearchÂ
Is the containment policy too strict- evidence from a SIAR-Macro model with reinfections, JMP
Abstract: This paper extends the Eichenbaum et al. (2021) model, which links epidemiology and economic decisions, to examine optimal containment policies during COVID-19. My model highlights that people adjust consumption and work hours in response to the spread of the virus, reducing infections but potentially deepening the recession due to combined demand and supply effects. The model incorporates two key features of COVID-19: asymptomatic cases and reinfections. Using a consumption tax as a proxy for containment, I analyze two policies: a simple consumption tax for all and a targeted policy that sets consumption levels for symptomatic individuals. The results suggest that targeted policies could achieve better outcomes, potentially requiring less stringent containment and mitigating the recession. Policymakers should consider the diverse characteristics of affected populations when designing pandemic responses.
Credit Access on Borrowing Constraints and Fiscal Policies during COVID Pandemic
Abstract: This paper is built upon the dynamic stochastic general equilibrium (DSGE) model framework developed by Miguel Faria e Castro (2021) to examine the effectiveness of multiple fiscal policies of the 2020 coronavirus outbreak in the United States. This paper mainly focuses on evaluating the effectiveness of these fiscal policy responses during the COVID pandemic when borrowers have a stochastic borrowing constraint.